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by Stockwatch Business Reporter
West Texas Intermediate crude for November delivery lost 44 cents to $49.98 on the New York Merc, while Brent for December lost 20 cents to $55.80 (all figures in this para U.S.). Western Canadian Select traded at a discount of $11.30 to WTI ($38.68), unchanged. Natural gas for November added four cents to $2.94. The TSX energy index lost 1.19 points to close at 188.35.
Don Gray's Peyto Exploration & Development Corp. (PEY) lost 52 cents to $19.53 on 2.74 million shares. Once it was exceedingly rare for this stock to dip below $20, but since mid-August it has done so 11 times. Just a year ago, the stock was worth over $38. Today's drop came in the wake of the latest monthly report from president and chief executive officer Darren Gee, published on Peyto's website. Mr. Gee began on an optimistic note: The first snowstorm of the season hit Calgary this week, which, although bad news for those already missing the summer heat, is welcome news for Alberta gas producers such as Peyto, as it signifies the end of the seasonal lack of gas demand. Gas prices should start to head higher as people reach for the thermostats to stave off the cold. Mr. Gee emphasized that, although Peyto struggled over the summer with volatile gas prices, the company is generally better able to cope than many other producers, which may face challenges such as: lack of operatorship of their assets; take-or-pay contracts with mid-stream companies; and the possibility of damaging their reservoirs if they shut in production. Mr. Gee also reckoned that some companies fear that investors will punish them if they do not "hit their numbers," meaning if they do not achieve their production guidance.
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